Ecolab Q1 2023 Earnings Report
Key Takeaways
Ecolab reported a strong first quarter with organic sales growth of 13% and adjusted EPS of $0.88, a 7% increase year-over-year. The company's performance was driven by double-digit growth in key segments and improved operating income margin.
Reported sales reached $3.6 billion, a 9% increase compared to the previous year, with organic sales growing by 13%.
Operating income increased by 38%, with organic operating income growth accelerating to 19%.
The organic operating income margin expanded by 50 bps year-over-year to 10.6%, driven by modest gross margin expansion and improved productivity.
Reported diluted EPS increased by 37% to $0.82, while adjusted diluted EPS rose by 7% to $0.88.
Ecolab
Ecolab
Ecolab Revenue by Segment
Forward Guidance
Ecolab expects to deliver quarterly adjusted earnings per share growth that accelerates towards its low double-digit historical performance. For the second quarter of 2023, the company expects adjusted diluted earnings per share in the $1.15 to $1.25 range.
Positive Outlook
- Continued robust sales growth
- Easing delivered product cost inflation
- Improved productivity
- Strong organic sales gains
- Double-digit growth in organic operating income
Challenges Ahead
- Challenging macro environment
- High delivered product costs
- Easing demand
- Higher interest expense
- Currency translation
Revenue & Expenses
Visualization of income flow from segment revenue to net income